Bharti Airtel has signed a trading deal to sell its 800 MHz spectrum to Reliance Jio in Andhra Pradesh, Delhi, and Mumbai circles for Rs 1,037.6 crore.
“Through this agreement, Airtel will receive a consideration of Rs 1037.6 crores from Jio for the proposed transfer. In addition, Jio will assume future liabilities of Rs 459 crores relating to the spectrum,” Airtel said in a statement Tuesday.
The spectrum transfer comprises 800 MHz bands in Andhra Pradesh (3.75 MHz), Delhi (1.25 MHz), and Mumbai (2.50 MHz).
The trading agreement is in accordance with the Spectrum Trading Guidelines issued by the Department of Telecommunications (DoT) and is subject to the requisite regulatory and statutory approvals, a statement from Reliance Industries said.
“The sale of the 800 MHz blocks in these three circles has enabled us to unlock value from the spectrum that was unutilized. This is aligned to our overall network strategy,” Gopal Vittal, MD & CEO (India and South Asia), Bharti Airtel said in the company statement.
With this trading of the right-to-use spectrum, Jio will have 2X15MHz of spectrum in the 800MHz band in the Mumbai circle and 2X10MHz of spectrum in the 800MHz band in Andhra Pradesh and Delhi circles, thereby further consolidating its spectrum footprint in these circles, the Mukesh Ambani-led telco said.